L&T Finance Holding launches Rs 850 crore share QIP

March 9, 2018

L&T Finance Holdings is raising up to Rs 850 crore in a share sale to institutional investors, with the non-banking finance arm of India’s biggest construction company taking advantage of the market buoyancy to strengthen its capital base and bankroll expansion.

In the sale that beginning Thursday, the company will offer shares at a discount of up to 5 per of the floor price, which is pegged at Rs 161.79.

Floor Price is the minimum price at which bids can be made. Shares in L&T Finance surged 32% in the past one year, compared with a 15.4% climb in the broader benchmark, the 30-stock Sensex.

Citi Group, Edelweiss Financial Services, Motilal Oswal and JM Financial Services are the investment bankers for the money-raising, according to the term sheet seen by ET.

Through this share sale to institutions, the company will be pruning up to 3.3% of its equity. The minimum application size is 2,000 equity shares.

The issued capital would be used for various purposes like strengthening the capital base, business growth and other general purposes, says the term sheet.

Mutual funds can subscribe a minimum of 10% of the issue size while allocation to US investors cannot be more than 45%. There is a lock-in period of three months during which investors cannot sell the shares.

L&T Finance Holdings shares gained 0.67% to Rs 158.75. The company has informed exchanges about the proposed fund raising, citing its board approval.

In a separate move earlier in the day, L&T Finance Holdings said that it has completed the process of preferential allotment to Larsen & Toubro. The allotment of about 108 million shares of Rs 10 each was made at the issue price of Rs 185.51.